RI-Malaysia palm oil deal

RI-Malaysia palm oil deal

KUALA LUMPUR (Reuter): Boustead Holdings Bhd is developing a 24,000 hectare (60,000 acre) oil palm plantation in Sumatra, Indonesia, with local and Malaysian parties, the national Bernama news agency reported.

The company will invest 200 million ringgit over six to seven years on the project, managing director Lodin Wok Kamaruddin was quoted as saying.

The Johor Islamic Development Foundation of Malaysia and an undisclosed Indonesian bank are partners with Boustead in the project.

Lodin said Boustead may acquire another 16,000 hectares (40,000 acres) of oil palm land next to the project to create "synergy" with the venture.

"If it is necessary, we may consider building a mill," he said.